Qatar Issues Dire Energy Warning For ‘Economies of the World’ As U.S. Iran War Intensifies

Qatar is warning that the Iran war could force the shutdown of Gulf oil and gas exporters, driving oil prices to $150 a barrel.

“This will bring down the economies of the world,” Qatar Energy Minister, Saad al-Kaabi, told the Financial Times. “If this war continues for a few weeks, GDP growth around the world will be impacted. Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply.”

Brent crude oil prices were up more than 4 percent early Friday, surpassing $85 a barrel. In the Financial Times story, al-Kaabi warned that if ships are unable to traverse the Strait of Hormuz, it’s possible that the price will reach $150.

Qatar already had to shut down Liquid Natural Gas production at its Ras Laffan plant, the second largest LNG plant in the world earlier this week. Al-Kaabi told the Financial Times that Qatar wouldn’t fully recover its production and exporting for “weeks to months” because of the drone strike.

Since the U.S. and Israel launched their military operation against Iran on February 28, the regime has lashed out at neighboring countries. Its drone and missile strikes have largely targeted oil and gas infrastructure throughout the Middle East, as well as U.S. military bases.

Among the greatest concerns is the Strait of Hormuz. Iran has pledged to attack any ship attempting to traverse it. The BBC reported that about a fifth of the world’s oil supply is exported through the strait on a daily basis.

Al-Kaabi told the Financial Times he expected many Gulf energy exporters to shut down relatively soon. “Everybody that has not called for force majeure we expect will do so in the next few days that this continues. All exporters in the Gulf region will have to call force majeure. If they don’t, they are at some point going to pay the liability for that legally, and that’s their choice.”